B. EFFECTIVE AUDIT AND RISK MANAGEMENT (CONT’D) I. Audit Committee (cont’d) The Board is responsible for presenting a clear, balanced and understandable assessment of the Group’s performance and position when presenting the annual audited financial statements and interim financial statements on a quarterly basis to the shareholders. The AC is entrusted to assist the Board in reviewing the Group’s financial reporting process and accuracy of its financial results, and scrutinising information for disclosure to ensure accuracy, adequacy, completeness and compliance with the accounting standards. The Board places great emphasis on the objectivity and independence of the external auditors. Through the AC, the Board maintains a transparent relationship with the external auditors in seeking professional advice on the internal control and ensuring compliance with the appropriate accounting standards. The AC is empowered to communicate directly with the external auditors to highlight any issues of concern at any point in time. The external auditors would meet with the AC at least two (2) times a year without the presence of the executive Board members and Management on matters related to the Group and its audit activities. During these meetings, the external auditors highlight and discuss the nature and scope of the audit, audit programme, internal controls and any other issues that may require the attention of the AC or the Board. During the year under review, the AC met with the external auditors two (2) times without the presence of Management. The AC members are financially literate and able to understand the Company’s business and matters under the purview of the AC, including the financial reporting process. The AC members will undertake continuous professional development to keep themselves abreast of relevant developments in accounting and auditing standards, practices and rules as and when required. The AC ensures the external audit function is independent of the activities it audits and reviews contracts for the provision of non-audit services by the external auditors to ensure that they do not give rise to conflicts of interests. The excluded contracts would include management consulting, internal audit and standard operating policies and procedures documentation. For FY2023, the fees paid to the external auditors, TGS TW PLT and its affiliated firms by the Group are stated in the Additional Compliance Information of this IAR2023. The external auditors have confirmed to the AC that they are, and have been, independent throughout the conduct of the audit engagement in accordance with the independence criteria set out by the Malaysian Institute of Accountants. Based on the AC’s assessment of the External Auditors, the Board is satisfied with the independence, quality of service and adequacy of resources provided by the External Auditors in carrying out the annual audit for the FY2023. In view thereof, the Board has recommended the re-appointment of the External Auditors for the approval of shareholders at the forthcoming 23rd AGM. Further information on the roles and responsibilities of the AC may be found in the AC Report on page 150 to page 153 of this IAR2023. II. Risk Management and Internal Control Framework The Board is ultimately responsibility for effectively managing risks across the Group, determining its risk appetite as well as ensuring that each business area implements appropriate internal controls. In order to achieve this objective, the Group has adopted a risk management policy. The Group’s risk management systems are designed to manage, mitigate and eliminate risks (where possible), to achieve business objectives, but can only provide reasonable and not absolute assurance against material misstatement or loss. The Board has delegated its responsibility for reviewing the effectiveness of the Group’s systems of internal control to the RMC. This covers all material controls including financial, operational, compliance and risk management systems. The RMC is further supported by several sources of internal assurance within the Group in order to determine the adequacy and effectiveness of the existing risk controls. CORPORATE GOVERNANCE STATEMENT (cont’d) ANNUAL REPORT 2023 147 GOVERNANCE
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